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Essity Aktiebolag

OM:ESSITY B
Snowflake Description

Mediocre balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ESSITY B
OM
SEK187B
Market Cap
  1. Home
  2. SE
  3. Household
Company description

Essity Aktiebolag (publ) develops, produces, and sells personal care, consumer tissue, and professional hygiene products and solutions worldwide. The last earnings update was 22 days ago. More info.


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ESSITY B Share Price and Events
7 Day Returns
2.7%
OM:ESSITY B
1.5%
Europe Household Products
0.5%
SE Market
1 Year Returns
17.3%
OM:ESSITY B
-4.9%
Europe Household Products
0.7%
SE Market
ESSITY B Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Essity Aktiebolag (ESSITY B) 2.7% 18.7% 19.8% 17.3% - -
Europe Household Products 1.5% 3.3% -7% -4.9% -8.9% 14.1%
SE Market 0.5% 4.7% 7% 0.7% 10.4% 15.9%
1 Year Return vs Industry and Market
  • ESSITY B outperformed the Household Products industry which returned -4.9% over the past year.
  • ESSITY B outperformed the Market in Sweden which returned 0.7% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

ESSITY B Value

 Is Essity Aktiebolag undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Essity Aktiebolag to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our calculation method for this is changing soon.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Essity Aktiebolag.

OM:ESSITY B Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 19 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year SE Government Bond Rate 0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OM:ESSITY B
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year SE Govt Bond Rate 0.4%
Equity Risk Premium S&P Global 9.6%
Household Products Unlevered Beta Simply Wall St/ S&P Global 0.43
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.425 (1 + (1- 22%) (29.13%))
0.522
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.43% + (0.8 * 9.57%)
8.09%

Discounted Cash Flow Calculation for OM:ESSITY B using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Essity Aktiebolag is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

OM:ESSITY B DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (SEK, Millions) 9,272.56 10,984.12 11,874.68 12,680.51 13,541.02
Source Analyst x14 Analyst x14 Analyst x9 Est @ 6.79% Est @ 6.79%
Present Value
Discounted (@ 8.09%)
8,578.80 9,401.98 9,403.79 9,290.63 9,178.82
Present value of next 5 years cash flows SEK45,854.02
OM:ESSITY B DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= SEK13,541.02 × (1 + 0.43%) ÷ (8.09% – 0.43%)
SEK177,716.08
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= SEK177,716.08 ÷ (1 + 8.09%)5
SEK120,465.37
OM:ESSITY B Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= SEK45,854.02 + SEK120,465.37
SEK166,319.39
Equity Value per Share
(SEK)
= Total value / Shares Outstanding
= SEK166,319.39 / 702.34
SEK236.81
OM:ESSITY B Discount to Share Price
Calculation Result
Value per share (SEK) From above. SEK236.81
Current discount Discount to share price of SEK265.40
= -1 x (SEK265.40 - SEK236.81) / SEK236.81
-12.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Essity Aktiebolag is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Essity Aktiebolag's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Essity Aktiebolag's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OM:ESSITY B PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in SEK SEK11.23
OM:ESSITY B Share Price ** OM (2019-02-22) in SEK SEK265.4
Europe Household Products Industry PE Ratio Median Figure of 5 Publicly-Listed Household Products Companies 17.83x
Sweden Market PE Ratio Median Figure of 320 Publicly-Listed Companies 16.18x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Essity Aktiebolag.

OM:ESSITY B PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= OM:ESSITY B Share Price ÷ EPS (both in SEK)

= 265.4 ÷ 11.23

23.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Essity Aktiebolag is overvalued based on earnings compared to the Europe Household Products industry average.
  • Essity Aktiebolag is overvalued based on earnings compared to the Sweden market.
Price based on expected Growth
Does Essity Aktiebolag's expected growth come at a high price?
Raw Data
OM:ESSITY B PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.64x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
12%per year
Europe Household Products Industry PEG Ratio Median Figure of 5 Publicly-Listed Household Products Companies 1.97x
Sweden Market PEG Ratio Median Figure of 232 Publicly-Listed Companies 1.24x

*Line of best fit is calculated by linear regression .

OM:ESSITY B PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.64x ÷ 12%

1.96x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Essity Aktiebolag is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Essity Aktiebolag's assets?
Raw Data
OM:ESSITY B PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in SEK SEK67.12
OM:ESSITY B Share Price * OM (2019-02-22) in SEK SEK265.4
Europe Household Products Industry PB Ratio Median Figure of 8 Publicly-Listed Household Products Companies 2.21x
Sweden Market PB Ratio Median Figure of 559 Publicly-Listed Companies 2.4x
OM:ESSITY B PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OM:ESSITY B Share Price ÷ Book Value per Share (both in SEK)

= 265.4 ÷ 67.12

3.95x

* Primary Listing of Essity Aktiebolag.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Essity Aktiebolag is overvalued based on assets compared to the Europe Household Products industry average.
X
Value checks
We assess Essity Aktiebolag's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Household Products industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Household Products industry average (and greater than 0)? (1 check)
  5. Essity Aktiebolag has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ESSITY B Future Performance

 How is Essity Aktiebolag expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Essity Aktiebolag expected to grow at an attractive rate?
  • Essity Aktiebolag's earnings growth is expected to exceed the low risk savings rate of 0.4%.
Growth vs Market Checks
  • Essity Aktiebolag's earnings growth is expected to exceed the Sweden market average.
  • Essity Aktiebolag's revenue growth is positive but not above the Sweden market average.
Annual Growth Rates Comparison
Raw Data
OM:ESSITY B Future Growth Rates Data Sources
Data Point Source Value (per year)
OM:ESSITY B Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 12%
OM:ESSITY B Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 3.4%
Europe Household Products Industry Earnings Growth Rate Market Cap Weighted Average 6.6%
Europe Household Products Industry Revenue Growth Rate Market Cap Weighted Average 3.4%
Sweden Market Earnings Growth Rate Market Cap Weighted Average 9.1%
Sweden Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OM:ESSITY B Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in SEK Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OM:ESSITY B Future Estimates Data
Date (Data in SEK Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 131,014 1
2021-12-31 132,298 19,589 11,202 14
2020-12-31 127,892 18,377 10,697 19
2019-12-31 124,090 16,207 9,157 18
OM:ESSITY B Past Financials Data
Date (Data in SEK Millions) Revenue Cash Flow Net Income *
2018-12-31 118,500 13,160 7,886
2018-09-30 116,052 12,471 7,372
2018-06-30 113,583 12,432 8,474
2018-03-31 112,017 12,246 8,116
2017-12-31 109,265 12,729 8,116
2017-09-30 107,373 12,884 6,212
2017-06-30 105,430 13,113 5,853
2017-03-31 102,258 13,968 3,748
2016-12-31 101,238 12,778 3,800

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Essity Aktiebolag's earnings are expected to grow by 12% yearly, however this is not considered high growth (20% yearly).
  • Essity Aktiebolag's revenue is expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OM:ESSITY B Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from Essity Aktiebolag Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OM:ESSITY B Future Estimates Data
Date (Data in SEK Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 15.98 19.40 12.72 9.00
2020-12-31 15.38 18.80 12.18 13.00
2019-12-31 13.18 15.40 10.48 13.00
OM:ESSITY B Past Financials Data
Date (Data in SEK Millions) EPS *
2018-12-31 11.23
2018-09-30 10.50
2018-06-30 12.07
2018-03-31 11.56
2017-12-31 11.56
2017-09-30 8.85
2017-06-30 8.33
2017-03-31
2016-12-31 5.41

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Essity Aktiebolag is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Essity Aktiebolag's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Essity Aktiebolag has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ESSITY B Past Performance

  How has Essity Aktiebolag performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Essity Aktiebolag's growth in the last year to its industry (Household Products).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Essity Aktiebolag's year on year earnings growth rate has been positive over the past 5 years.
  • Essity Aktiebolag's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Essity Aktiebolag's 1-year earnings growth is negative, it can't be compared to the Europe Household Products industry average.
Earnings and Revenue History
Essity Aktiebolag's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Essity Aktiebolag Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OM:ESSITY B Past Revenue, Cash Flow and Net Income Data
Date (Data in SEK Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 118,500.00 7,886.00 20,570.00
2018-09-30 116,052.00 7,372.00 20,320.00
2018-06-30 113,583.00 8,474.00 19,934.00
2018-03-31 112,017.00 8,116.00 19,764.00
2017-12-31 109,265.00 8,116.00 19,130.00
2017-09-30 107,373.00 6,212.00 18,769.00
2017-06-30 105,430.00 5,853.00 18,217.00
2017-03-31 102,258.00 3,748.00 17,335.00
2016-12-31 101,238.00 3,800.00 16,965.00
2015-12-31 98,519.00 6,129.00 16,216.00
2014-12-31 87,997.00 5,212.00 14,527.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Essity Aktiebolag has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Essity Aktiebolag used its assets more efficiently than the Europe Household Products industry average last year based on Return on Assets.
  • Essity Aktiebolag's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Essity Aktiebolag's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Household Products industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Essity Aktiebolag has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ESSITY B Health

 How is Essity Aktiebolag's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Essity Aktiebolag's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Essity Aktiebolag is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Essity Aktiebolag's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Essity Aktiebolag's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Essity Aktiebolag Company Filings, last reported 1 month ago.

OM:ESSITY B Past Debt and Equity Data
Date (Data in SEK Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 54,899.00 54,327.00 3,430.00
2018-09-30 53,638.00 56,213.00 3,306.00
2018-06-30 53,271.00 59,677.00 4,041.00
2018-03-31 53,863.00 56,992.00 6,442.00
2017-12-31 49,570.00 54,838.00 4,126.00
2017-09-30 45,302.00 55,530.00 5,238.00
2017-06-30 44,580.00 58,660.00 5,930.00
2017-03-31 43,108.00 62,146.00 31,134.00
2016-12-31 39,580.00 36,873.00 4,263.00
2015-12-31 48,275.00 34,717.00 4,828.00
2014-12-31 44,925.00 40,787.00 3,808.00
  • Essity Aktiebolag's level of debt (99%) compared to net worth is high (greater than 40%).
  • Unable to establish if Essity Aktiebolag's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (24.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.5x coverage).
X
Financial health checks
We assess Essity Aktiebolag's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Essity Aktiebolag has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ESSITY B Dividends

 What is Essity Aktiebolag's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.17%
Current annual income from Essity Aktiebolag dividends. Estimated to be 2.66% next year.
If you bought SEK2,000 of Essity Aktiebolag shares you are expected to receive SEK43 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Essity Aktiebolag's pays a higher dividend yield than the bottom 25% of dividend payers in Sweden (1.88%).
  • Essity Aktiebolag's dividend is below the markets top 25% of dividend payers in Sweden (4.84%).
Upcoming dividend payment

Purchase Essity Aktiebolag on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OM:ESSITY B Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
Europe Household Products Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 2.5%
Sweden Market Average Dividend Yield Market Cap Weighted Average of 244 Stocks 3.7%
Sweden Minimum Threshold Dividend Yield 10th Percentile 1.2%
Sweden Bottom 25% Dividend Yield 25th Percentile 1.9%
Sweden Top 25% Dividend Yield 75th Percentile 4.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OM:ESSITY B Future Dividends Estimate Data
Date (Data in SEK) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 7.40 1.00
2021-12-31 7.75 14.00
2020-12-31 7.17 19.00
2019-12-31 6.42 19.00
OM:ESSITY B Past Annualized Dividends Data
Date (Data in SEK) Dividend per share (annual) Avg. Yield (%)
2019-01-31 5.750 2.247
2018-03-08 5.750 2.563

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Essity Aktiebolag has stable dividend payments.
  • Essity Aktiebolag only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Essity Aktiebolag's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).
X
Income/ dividend checks
We assess Essity Aktiebolag's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Essity Aktiebolag afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Essity Aktiebolag has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ESSITY B Management

 What is the CEO of Essity Aktiebolag's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Magnus Groth
COMPENSATION SEK27,278,140
AGE 55
TENURE AS CEO 2.1 years
CEO Bio

Mr. Magnus Groth, MBA, MSc Econ, ME, has been President and Chief Executive Officer of Essity Aktiebolag (publ) since 2017 and has been its Director since 2016. Mr. Groth served as the Chief Executive Officer and President of Svenska Cellulosa Aktiebolaget SCA (publ) from March 1, 2015 to June 15, 2017. Mr. Groth served as the President of Consumer Goods Europe at Svenska Cellulosa Aktiebolaget, SCA from January 1, 2012 to 2015. Mr. Groth was employed at Essity Aktiebolag (publ) in 2011. Mr. Groth served as the President of SCA Tissue Europe at SCA Hygiene Products SE and Svenska Cellulosa Aktiebolaget, SCA from April 15, 2011 to January 1, 2012. He served as the Chief Executive Officer and President of Studsvik AB from September 1, 2005 to August 31, 2011. He served as an Executive Vice President and Head of Group Function Business Development of Vattenfall AB until August 31, 2005 and as Senior Vice President of Business Development from 2001 to 2005. He has experience of senior positions in such companies as Boston Consulting Group and Vattenfall. He has been an Independent Director of Acando AB (publ.) since 2009 and Bosch Rexroth Mellansel AB since 2007. He serves as a Director of Pilum AB. He served as a Director of Svenska Cellulosa Aktiebolaget SCA (publ) from 2015 to May 17, 2017. Mr. Groth received Master of Science in Avionics and naval technology from Royal Institute of Technology in 1987 and MS in Economics and Business from Stockholm School of Economics in 1992.

CEO Compensation
  • Magnus's compensation has been consistent with company performance over the past year.
  • Magnus's remuneration is about average for companies of similar size in Sweden.
Management Team Tenure

Average tenure and age of the Essity Aktiebolag management team in years:

4.1
Average Tenure
53
Average Age
  • The tenure for the Essity Aktiebolag management team is about average.
Management Team

Magnus Groth

TITLE
President
COMPENSATION
SEK27M
AGE
55
TENURE
2.1 yrs

Fredrik Rystedt

TITLE
CFO, Executive VP & Head of Group Function Finance
AGE
55
TENURE
2.1 yrs

Johan Karlsson

TITLE
Vice President of Investor Relations

Mikael Schmidt

TITLE
Senior VP of Group Function Legal Affairs
AGE
58
TENURE
7.1 yrs

Karl Stoltz

TITLE
Manager of Media Relations

Anna Sävinger-Åslund

TITLE
Senior Vice President of Group Function Human Resources
AGE
49
TENURE
4.1 yrs

Don Lewis

TITLE
President of Professional Hygiene
AGE
57
TENURE
7.1 yrs

Volker Zöller

TITLE
President of Consumer Goods
AGE
51
TENURE
4.1 yrs

Pablo Fuentes

TITLE
President of Latin America
AGE
45
TENURE
3.1 yrs

Donato Giorgio

TITLE
President of Global Manufacturing
AGE
45
Board of Directors Tenure

Average tenure and age of the Essity Aktiebolag board of directors in years:

3.1
Average Tenure
58
Average Age
  • The tenure for the Essity Aktiebolag board of directors is about average.
Board of Directors

Pär Boman

TITLE
Chairman of the Board
COMPENSATION
SEK2M
AGE
57
TENURE
3.1 yrs

Magnus Groth

TITLE
President
COMPENSATION
SEK27M
AGE
55
TENURE
3.1 yrs

Barbara Thoralfsson

TITLE
Non-Executive Director
COMPENSATION
SEK1M
AGE
59
TENURE
3.1 yrs

Ewa Björling

TITLE
Director
COMPENSATION
SEK700K
AGE
57
TENURE
3.1 yrs

Maija-Liisa Friman

TITLE
Director
COMPENSATION
SEK700K
AGE
66
TENURE
3.1 yrs

Annemarie Gardshol

TITLE
Director
COMPENSATION
SEK700K
AGE
51
TENURE
3.1 yrs

Louise Svanberg

TITLE
Director
COMPENSATION
SEK805K
AGE
60
TENURE
3.1 yrs

Bert Ake Nordberg

TITLE
Director
COMPENSATION
SEK1M
AGE
62
TENURE
3.1 yrs

Lars Sörensen

TITLE
Director
COMPENSATION
SEK700K
AGE
64
TENURE
2.1 yrs

Tina Elvingsson Engfors

TITLE
Employee Representative Director
AGE
51
TENURE
2.1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Essity Aktiebolag insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (SEK) Value (SEK)
28. Dec 18 Buy Annemarie Gardshol Individual 27. Dec 18 27. Dec 18 400 SEK218.20 SEK87,280
30. Oct 18 Buy Kersti Strandqvist Individual 29. Oct 18 29. Oct 18 1,000 SEK204.99 SEK204,990
25. May 18 Buy Carl Fredrik Rystedt Individual 25. May 18 25. May 18 3,000 SEK235.20 SEK705,600
24. May 18 Sell Mikael Schmidt Individual 24. May 18 24. May 18 -4,500 SEK237.40 SEK-1,068,300
24. May 18 Buy Mikael Schmidt Individual 24. May 18 24. May 18 9,500 SEK237.70 SEK2,258,150
21. May 18 Buy Anna Aslund Individual 18. May 18 18. May 18 1,260 SEK238.10 SEK300,006
14. May 18 Buy Georg Schmundt-Thomas Individual 11. May 18 11. May 18 3,300 SEK232.63 SEK766,966
08. May 18 Buy Volker Zöller Individual 08. May 18 08. May 18 2,225 SEK230.50 SEK512,863
30. Apr 18 Buy Donato Giorgio Individual 29. Apr 18 29. Apr 18 2,800 SEK226.05 SEK632,928
27. Mar 18 Buy Josephine Edwall-Björklund Individual 26. Mar 18 26. Mar 18 1,550 SEK220.87 SEK342,356
26. Mar 18 Buy Kersti Strandqvist Individual 26. Mar 18 26. Mar 18 1,600 SEK220.70 SEK353,120
23. Mar 18 Buy Robert Sjöström Individual 22. Mar 18 22. Mar 18 3,000 SEK219.10 SEK657,300
23. Mar 18 Buy Magnus Groth Individual 23. Mar 18 23. Mar 18 9,500 SEK217.80 SEK2,069,100
X
Management checks
We assess Essity Aktiebolag's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Essity Aktiebolag has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ESSITY B News

Simply Wall St News

ESSITY B Company Info

Map
Description

Essity Aktiebolag (publ) develops, produces, and sells personal care, consumer tissue, and professional hygiene products and solutions worldwide. The company operates through Personal Care, Consumer Tissue, and Professional Hygiene segments. Its personal care products include incontinence products, skincare products, wet wipes, and wash gloves; baby diapers and pant diapers, wet wipes, shampoos, lotions, and baby oils; and pads, panty liners, tampons, intimate soaps, and intimate wipes. The company’s personal care products also comprise medical solutions consisting of surgical tapes, retention bandages, surgical/post-operation dressings, adhesive bandages/plasters, and advanced wound care products; phlebology products, such as compression stockings, medical compression garments, and lymphology products comprising compression bandages, wraps, garments, and pneumatic compression pumps for compression therapy; and fracture management products consisting of cast tapes, splinting materials, casting accessories, and physiotherapy and orthopedic soft goods and braces. It also provides consumer tissue products, including toilet paper, household towels, handkerchiefs, facial tissues, wet wipes and napkins; hygiene solutions that include toilet paper, paper hand towels, napkins, hand soaps and lotions, hand sanitizers, dispensers, cleaning and wiping products, and Internet of Things sensor technology products, as well as offers related service and maintenance. The company markets its personal care products primarily under the TENA, Jobst, Leukoplast, Libero, Libresse, Nosotras, Saba, as well as other retailer’s brands; consumer tissue products primarily under the Edet, Lotus, Regio, Tempo, Vinda, Zewa, and other retailers’ brands; and professional hygiene products under the TORK brand name. Essity Aktiebolag (publ) was founded in 1849 and is headquartered in Stockholm, Sweden.

Details
Name: Essity Aktiebolag (publ)
ESSITY B
Exchange: OM
Founded: 1849
SEK186,503,992,087
702,342,489
Website: http://www.essity.com
Address: Essity Aktiebolag (publ)
Waterfront Building,
Klarabergsviadukten 63,
Stockholm,
Stockholm County, 101 23,
Sweden
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OM ESSITY B Class B Shares OMX Nordic Exchange Stockholm SE SEK 15. Jun 2017
OTCPK ETTY.F Class B Shares Pink Sheets LLC US USD 15. Jun 2017
DB ESWB Class B Shares Deutsche Boerse AG DE EUR 15. Jun 2017
LSE 0RQD Class B Shares London Stock Exchange GB SEK 15. Jun 2017
BATS-CHIXE ESSIBS Class B Shares BATS 'Chi-X Europe' GB SEK 15. Jun 2017
OTCPK ESSY.Y SPON ADR EACH REP 1 SHS Pink Sheets LLC US USD 21. Jun 2017
OM ESSITY A Class A Shares OMX Nordic Exchange Stockholm SE SEK 15. Jun 2017
DB ESW Class A Shares Deutsche Boerse AG DE EUR 15. Jun 2017
DB ESWA SPON ADR EACH REP 1 SHS Deutsche Boerse AG DE EUR 21. Jun 2017
LSE 0RQC Class A Shares London Stock Exchange GB SEK 15. Jun 2017
BATS-CHIXE ESSIAS Class A Shares BATS 'Chi-X Europe' GB SEK 15. Jun 2017
Number of employees
Current staff
Staff numbers
47,700
Essity Aktiebolag employees.
Industry
Household Products
Household
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/22 22:53
End of day share price update: 2019/02/22 00:00
Last estimates confirmation: 2019/02/18
Last earnings filing: 2019/01/31
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.